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Creating a Superior Employee Value Proposition

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The HR Observer
The HR Observer

Thom Janssen, Practice Leader, Towers Watson

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Thom Janssen Practice Leader Organisational Surveys & Insights Towers Watson
Creating a superior Employee Value Proposition Agenda: • The role reward plays in attracting employees • Understanding how to retain top talents • A view on what drives engagement in UAE
The whole employee experience….. 3 © 2014 Towers Watson. All rights reserved.
45%of employers indicate that hiring activity has increased compared to last year. 30%of employers report that turnover is rising. Talent mobility has increased. Only 31%of employers are able to do a good job of hiring critical talent. 39%of employers experience difficulties with retaining highly qualified people. …and is effected by what happens in Middle East: Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study.
GET (Employee experience) GIVE (Employer expectations) EVP 1. Organization 2. People 3. Work 4. Rewards 5. Opportunity Purpose & Values Jobs, Culture & People Total Rewards 1. Measurable performance 2. Discretionary effort 3. Self-investment 4. Values and behavior The Employee Value Proposition is the “Give and Get” for employees
Employee Value Proposition – why? Supports organizations to:  Attract the right employees  Retain skilled and top-performing talents  Engage the workforce in a sustainable way
The 2014 Global Talent Management & Rewards Study  Annual study of employers’ views on trends and issues in rewards and talent management  1,637 Employers participated globally  30+ Middle East participants The 2014 Global Workforce Study  Bi-annual study on employees’ view  32,000 full-time workers  1,800 Middle East respondents
Attraction Drivers Middle East Employee View 2014 Employee View 2012 Career advancement opportunities 1 3 Job security 2 2 Base pay/salary 3 1 Learning and development opportunities 4 4 Challenging work 5 - Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study. +2 -2 The role of cash in attracting talents has changed…..
Age: < 30 30-39 40-49 1 Career advancement opportunities Learning and development opportunities Base pay/salary 2 Learning and development opportunities Job security Job security 3 Challenging work Base pay/salary Career advancement opportunities 4 Base pay/salary Career advancement opportunities Learning and development opportunities 5 Job security Challenging work Organisation’s reputation as good employer 6 Organisation’s reputation as good employer Organisation’s reputation as good employer Challenging work 7 Vacation/paid time off Vacation/paid time off Organisation’s mission, vision and values …..particularly true for the new generation Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study.
Retention Drivers Employee View 2014 Employee View 2012 Base pay/salary 1 1 Career advancement opportunities 2 2 Job security 3 3 Relationship with supervisor/manager - - Learning and development opportunities 5 5 Short-term incentives 4 - Trust/Confidence in senior leadership - 4 Employer View 2014 1 2 - 3 - 4 5 Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study. Retention; employers overlook the importance of job security:
To get best performance from your people; Sustainably Engage them Financial impact of Sustainable Engagement
There is much to do still……. 26% Disengaged 16%Detached 36%Highly engaged 22%Unsupported
Driver: Middle East 2014 Middle East 2012 1. Image (Brand + Integrity) Snr. Leaders 2. Communication Supervisor 3. Supervisor Communication 4. Goals & Objectives Benefits 5. Snr. Leaders Image Key Drivers of Engagement: +4 +1 +3 +1 +4
Sustainable Engagement Employer BrandEmployer Brand ReputationReputation Integrity in dealingsIntegrity in dealings TransparencyTransparency Company PerformanceCompany Performance Educate on Culture & Values Educate on Culture & Values Leading by exampleLeading by example Support & RecognitionSupport & Recognition Interest in employee well-beingInterest in employee well-being Leadership Driving Engagement:
And less likely to report having difficulty attracting and retaining employeesAnd less likely to report having difficulty attracting and retaining employees Companies with a clearly defined Employee Value Proposition are:
Creating a Superior Employee Value Proposition

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Creating a Superior Employee Value Proposition

  • 1. Thom Janssen Practice Leader Organisational Surveys & Insights Towers Watson
  • 2. Creating a superior Employee Value Proposition Agenda: • The role reward plays in attracting employees • Understanding how to retain top talents • A view on what drives engagement in UAE
  • 3. The whole employee experience….. 3 © 2014 Towers Watson. All rights reserved.
  • 4. 45%of employers indicate that hiring activity has increased compared to last year. 30%of employers report that turnover is rising. Talent mobility has increased. Only 31%of employers are able to do a good job of hiring critical talent. 39%of employers experience difficulties with retaining highly qualified people. …and is effected by what happens in Middle East: Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study.
  • 5. GET (Employee experience) GIVE (Employer expectations) EVP 1. Organization 2. People 3. Work 4. Rewards 5. Opportunity Purpose & Values Jobs, Culture & People Total Rewards 1. Measurable performance 2. Discretionary effort 3. Self-investment 4. Values and behavior The Employee Value Proposition is the “Give and Get” for employees
  • 6. Employee Value Proposition – why? Supports organizations to:  Attract the right employees  Retain skilled and top-performing talents  Engage the workforce in a sustainable way
  • 7. The 2014 Global Talent Management & Rewards Study  Annual study of employers’ views on trends and issues in rewards and talent management  1,637 Employers participated globally  30+ Middle East participants The 2014 Global Workforce Study  Bi-annual study on employees’ view  32,000 full-time workers  1,800 Middle East respondents
  • 8. Attraction Drivers Middle East Employee View 2014 Employee View 2012 Career advancement opportunities 1 3 Job security 2 2 Base pay/salary 3 1 Learning and development opportunities 4 4 Challenging work 5 - Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study. +2 -2 The role of cash in attracting talents has changed…..
  • 9. Age: < 30 30-39 40-49 1 Career advancement opportunities Learning and development opportunities Base pay/salary 2 Learning and development opportunities Job security Job security 3 Challenging work Base pay/salary Career advancement opportunities 4 Base pay/salary Career advancement opportunities Learning and development opportunities 5 Job security Challenging work Organisation’s reputation as good employer 6 Organisation’s reputation as good employer Organisation’s reputation as good employer Challenging work 7 Vacation/paid time off Vacation/paid time off Organisation’s mission, vision and values …..particularly true for the new generation Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study.
  • 10. Retention Drivers Employee View 2014 Employee View 2012 Base pay/salary 1 1 Career advancement opportunities 2 2 Job security 3 3 Relationship with supervisor/manager - - Learning and development opportunities 5 5 Short-term incentives 4 - Trust/Confidence in senior leadership - 4 Employer View 2014 1 2 - 3 - 4 5 Sources: Towers Watson 2014 Global Workforce Study, 2014 Talent Management & Rewards Study. Retention; employers overlook the importance of job security:
  • 11. To get best performance from your people; Sustainably Engage them Financial impact of Sustainable Engagement
  • 12. There is much to do still……. 26% Disengaged 16%Detached 36%Highly engaged 22%Unsupported
  • 13. Driver: Middle East 2014 Middle East 2012 1. Image (Brand + Integrity) Snr. Leaders 2. Communication Supervisor 3. Supervisor Communication 4. Goals & Objectives Benefits 5. Snr. Leaders Image Key Drivers of Engagement: +4 +1 +3 +1 +4
  • 14. Sustainable Engagement Employer BrandEmployer Brand ReputationReputation Integrity in dealingsIntegrity in dealings TransparencyTransparency Company PerformanceCompany Performance Educate on Culture & Values Educate on Culture & Values Leading by exampleLeading by example Support & RecognitionSupport & Recognition Interest in employee well-beingInterest in employee well-being Leadership Driving Engagement:
  • 15. And less likely to report having difficulty attracting and retaining employeesAnd less likely to report having difficulty attracting and retaining employees Companies with a clearly defined Employee Value Proposition are: